Islamabad, May 12, 2025: Microsoft and OpenAI are reportedly engaged in complex negotiations that could reshape their multibillion-dollar deal, according to the Financial Times.
The discussions come as OpenAI looks to restructure its for-profit operations under a new legal model while keeping ultimate control with its nonprofit board.
OpenAI’s proposal to transition its commercial arm into a public benefit corporation is raising questions among investors particularly Microsoft, which has invested around $13 billion in the AI firm.
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Under the proposed framework, OpenAI’s nonprofit board would retain decision-making power, even over its future business strategy and governance.
At the core of the negotiations is Microsoft’s potential equity stake in the new structure.However, the discussions also reportedly include broader contractual terms.
Microsoft is said to be seeking continued access to future OpenAI technologies, even beyond the current 2030 agreement. In return, it may be willing to forfeit some equity.
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As OpenAI expands rapidly into the enterprise market and pursues projects like the Stargate supercomputing initiative, friction between the two tech giants is growing.
Microsoft is reportedly concerned about OpenAI becoming a rival in areas where the two previously collaborated.
So far, neither company has made public comments about the talks or their outcome.
